PennantPark Investment (NYSE:PNNT) Q1 2022 Earnings Conference Call February 10, 2022 12:00 PM ET Company Participants Art Penn – Chairman and Chief Executive Officer Richard Cheung – Chief Financial Officer Conference Call Participants Casey Alexander – Compass Point Robert Dodd – Raymond James Ryan Lynch – KBW Mickey Schleien – Ladenburg Kyle Joseph – Jeffries Melissa Wedel – J.P. Morgan Operator Good afternoon, and welcome to the PennantPark Investment Corporation's First Fiscal Quarter 2022 Earnings Con ...

Investment Strategy and Portfolio - PennantPark Investment Corporation aims to generate current income and capital appreciation through debt and equity investments primarily in U.S. middle-market companies, with average investments ranging from $10 million to $50 million [163]. - As of December 31, 2021, the company's portfolio totaled $1,445.4 million, with 93% in variable-rate investments and a weighted average yield on interest-bearing debt investments of 8.8% [182]. - For the three months ended December 31, 2021, the company invested $295.1 million in 15 new and 30 existing portfolio companies, with a weighted average yield on debt investments of 8.1% [184]. - The PennantPark Senior Loan Fund (PSLF) portfolio totaled $421.5 million as of December 31, 2021, consisting of 54 companies with an average investment size of $7.8 million and a weighted average yield of 7.2% [186]. - The portfolio includes a diverse range of industries, with significant investments in media, healthcare, and aerospace sectors [243]. - The company maintains a focus on floating rate instruments, which are indexed to LIBOR or Prime rates [243]. Financial Performance - For the three months ended December 31, 2021, investment income was $28.3 million, an increase from $18.7 million in the same period of 2020, primarily due to growth in the debt portfolio [212]. - Net investment income for the three months ended December 31, 2021, was $12.5 million, or $0.19 per share, compared to $8.3 million, or $0.12 per share, in the same period of 2020 [214]. - Total expenses for the three months ended December 31, 2021, were $15.8 million, up from $10.4 million in the same period of 2020, mainly due to increased financing costs and incentive fees [213]. - The net change in unrealized appreciation on investments for the three months ended December 31, 2021, was $46.8 million, down from $93.5 million in the same period of 2020 [216]. - The company reported a net realized and unrealized gain from investments of $504,913 for the three months ended December 31, 2021, down from $3,174,589 in the same period of 2020 [248]. Debt and Financing - The debt portfolio consisted of 93% variable-rate investments as of December 31, 2021, which are typically based on a floating interest rate index such as LIBOR [173]. - The Truist Credit Facility had outstanding borrowings of $445.2 million as of December 31, 2021, with a weighted average interest rate of 2.4% [223]. - The company had $150.0 million in aggregate principal amount of 2026 Notes outstanding, with an interest rate of 4.50% per year [225]. - The annualized weighted average cost of debt for Q4 2021 was 4.0%, compared to 3.4% in Q4 2020 [222]. - PSLF has a senior secured revolving credit facility of $275.0 million, increased from $250.0 million, with interest at LIBOR plus 260 basis points [242]. Impact of COVID-19 - The ongoing COVID-19 pandemic has created significant financial distress for portfolio companies, particularly in vulnerable sectors like retail and travel, potentially leading to defaults on financial obligations [169]. - The company has reduced distributions to stockholders compared to previous years due to the adverse effects of the COVID-19 pandemic on net investment income [171]. - The impact of the COVID-19 pandemic may lead to increased capital requirements for portfolio companies, necessitating follow-on investments [171]. - The company has implemented a business continuity planning strategy to safeguard employee health and ensure operational continuity during the pandemic [174]. Asset Coverage and Distributions - As of December 31, 2021, the asset coverage ratio was 190%, down from 221% as of September 30, 2021 [222]. - The company declared an increase in its second fiscal quarter 2022 distribution to $0.14 per share, payable on April 1, 2022 [249]. - The company declared distributions of $0.12 per share, totaling $8.0 million for the three months ended December 31, 2021, consistent with the prior year [254]. - The company may face limitations on distributions due to asset coverage ratios and could suffer adverse tax consequences if certain income distribution levels are not met [257]. Liquidity and Capital Resources - The company reported cash and cash equivalents of $39.6 million as of December 31, 2021, an increase from $20.4 million as of September 30, 2021 [236]. - Operating activities used cash of $177.4 million for the three months ended December 31, 2021, while financing activities provided cash of $196.6 million during the same period [237]. - The company’s liquidity and capital resources are deemed sufficient to take advantage of market opportunities [236]. - Cash and cash equivalents increased to $22,154,890 as of December 31, 2021, from $11,013,454 as of September 30, 2021, showing a significant increase of about 100% [246]. Valuation and Accounting - The company employs a multi-step valuation process for investments without readily available market values, ensuring fair value assessments are made in good faith [190]. - The company’s revenue recognition includes recording interest income on an accrual basis, with specific treatment for PIK interest and loan origination fees [200]. - The company has adopted ASC 825-10 for its Credit Facilities, aligning measurement attributes of both assets and liabilities to mitigate earnings volatility [196]. - The company intends to maintain its election to be treated as a RIC under Subchapter M of the Code, requiring annual distributions of at least 90% of net ordinary income and realized net short-term capital gains [204].

PennantPark Investment Corporation (NYSE:PNNT) Q4 2021 Earnings Conference Call November 18, 2021 12:00 PM ET Company Participants Art Penn - Chairman and Chief Executive Officer Richard Cheung - Chief Financial Officer Conference Call Participants Casey Alexander - Compass Point Robert Dodd - Raymond James Ryan Lynch - KBW Mickey Schleien - Ladenburg Kyle Joseph - Jefferies Melissa Wedel - JPMorgan Jim Altschul - Aviation Advisory Service Operator Good morning and welcome to the PennantPark Investment Corp ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER: 814-00736 PENNANTPARK INVESTMENT CORPORATION (Exact name of registrant as specified in its charter) MARYLAND 20-8250744 (State or other ...

Financial Data and Key Metrics Changes - Adjusted NAV increased by 4.1%, rising from $9.20 to $9.58 per share, and is up over 9% from pre-COVID levels as of December 31, 2019 [8] - Core net investment income was $0.14 per share, excluding one-time expenses [10][29] - NAV per share increased from $9.24 to $9.59, up 3.8% from the prior quarter [31] Business Line Data and Key Metrics Changes - Generated $51 million in cash proceeds from the equity portfolio during the quarter [9] - The portfolio consists of 86 companies across 29 different industries, with an average debt-to-EBITDA of 4.6x and an interest coverage ratio of 3.4x [12][33] - Equity investments appreciated by approximately 45% over the past 12 months [23] Market Data and Key Metrics Changes - The company has a diversified portfolio with 41% in first lien secured debt, 14% in second lien secured debt, and 35% in preferred and common equity [33] - The overall debt portfolio has a weighted average yield of 9.2% [33] Company Strategy and Development Direction - The company aims to grow net investment income through a three-pronged strategy: increasing assets on the balance sheet, growing the PSLF joint venture, and rotating out of equity investments into yield instruments [10][24] - Focus on core middle market companies, defined as those with EBITDA below $50 million, to avoid competition with higher-leverage markets [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of portfolio companies, particularly in sectors like healthcare and technology [17] - The company is optimistic about new loan originations, with $69 million in new originations since June 30 [11][62] - Management noted that the current repayment activity has abated, indicating a potential shift in market dynamics [11][62] Other Important Information - The company has no non-accruals on its books, indicating strong portfolio performance [12] - The company has reduced its energy investments to only 7% of the overall portfolio [22] Q&A Session Summary Question: Current outstanding debt on RAM and repayment capability - Management indicated that RAM has about $40 million of debt, which can be paid down over the next two to three years as the company generates cash flow [39][41] Question: Consideration of a share repurchase program - Management is open to considering a share repurchase program if proceeds from equity investments continue to grow [42][43] Question: Capital structure and SBA debt reduction - Management confirmed that the SBIC financing will wind down over the coming quarters, with a preference for increasing unsecured financing [47][48] Question: Securitization in the joint venture - Management discussed the potential for securitization to increase leverage and improve returns in the joint venture [50] Question: Equity co-investment strategy modifications - Management stated that they have not modified their equity co-investment strategy and continue to seek new investments [55][59] Question: Expectations for revenue and EBITDA growth - Management noted significant year-on-year growth in revenue and EBITDA, particularly in COVID-impacted sectors [69][70] Question: Yield on the portfolio outlook - Management expects stable yields and spreads, with a focus on selecting high-quality companies for investment [72][75]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER: 814-00736 PENNANTPARK INVESTMENT CORPORATION (Exact name of registrant as specified in its charter) MARYLAND 20-8250744 (State or ot ...

PennantPark Investment Corporation (NYSE:PNNT) Q2 2021 Earnings Conference Call May 6, 2021 12:00 PM ET Company Participants Art Penn - Chairman & Chief Executive Officer Aviv Efrat - Chief Financial Officer Conference Call Participants Casey Alexander - Compass Point Robert Dodd - Raymond James Ryan Lynch - KBW Mickey Schleien - Ladenburg Kyle Joseph - Jefferies Melissa Wedel - JPMorgan Operator Good afternoon and welcome to the PennantPark Investment Corporation's Second Fiscal Quarter 2021 Earnings Confe ...

ミ PennantPark 03/31/2021 N E W Y O R K • C H I C A G O • H O U S T O N • L O S A N G E L E S Forward-looking Statements and Risk Factors This presentation may include forward-looking statements. These forward-looking statements include comments with respect to our objectives and strategies and results of our operations. However, by their nature, these forward-looking statements involve numerous assumptions, uncertainties and opportunities, both general and specific. The risk exists that these statements may ...

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO COMMISSION FILE NUMBER: 814-00736 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) PENNANTPARK INVESTMENT CORPORATION (Exact name of registrant as specified in its charter) MARYLAND 20-8250744 (State or o ...

PennantPark Investment Corporation (NYSE:PNNT) Q1 2021 Earnings Conference Call February 10, 2021 1:00 PM ET Company Participants Art Penn - Chairman and Chief Executive Officer Aviv Efrat - Chief Financial Officer Conference Call Participants Mickey Schleien - Ladenburg Casey Alexander - Compass Point Robert Dodd - Raymond James Ryan Lynch - KBW Kyle Joseph - Jefferies Melissa Wedel - JPMorgan Jim Altschul - Aviation Advisory Service, Inc. Operator Good afternoon and welcome to the PennantPark Investment C ...